What matches the ambitions of startup stars? Nice wheels, but on great deals

When Rohit Chadda, co-founder of online food delivery service Food Panda, was shopping for a car, he test-drove quite a few before settling for the Audi A6 because of the "cockpit feel" at the steering wheel.

"If I simply wanted to be driven around, I wouldn't have gone for it. There are brands lower down the price scale that would be perfect for that. I bought my car for the pleasure of driving it," says Chadda, whose company has raised more than $300 million since its launch in 2012.

India's startup stars, who have had their struggle to establish businesses in new segments, are now sitting back and enjoying the ride. Young, self-made and conscious of every penny they spend, this segment likes sleek, new generation cars rather than heritage models.

Their ride is as much a statement as a means of getting from point A to point B. "My first car was a Maruti 800, my second a Fiat Palio," says Ramachandran Sivathanu of WE4, a Chennaibased video conferencing, messaging and m2m service. "I like the fact that my third car is a Merc... it ties in with my ambitions," says Sivanthu, showing off his B Class.

Velfie co-founder Ankush Johar has a BMW 7 Series, while Aditya Loomba, MD of ECO-rent-a-car, drives a BMW 5 Series. Then there are those who move higher up the list and have a fleet across continents -Ankur Saxena, CEO, Oxigen wallet, owns an Infiniti G35, a Corvette and a Nissan GTR in the US and an Audi Q7, Mercedes Benz S Class and a BMW 7 Series in India.

Clearly, the eye-popping valuations and topdollar investment from venture capital funds has these new-age entrepreneurs lining up for luxury . Although the luxe rush is all about brand identity , the startup entrepreneur is quite different from the traditional luxury buyer. They don't wait till all the cash is in the bank to make a down payment; instead they shop for the best finance packages to suit their demands.

Top luxury car brands like Mercedes Benz, Audi, BMW and Volvo are consciously tapping this segment as a lucrative niche.

"The luxury car customer is on an average 10 years younger in India than in Europe.Among them are a big number of self-made, young startup entrepreneurs who look for luxury as well as value for money ," says Tom Von Bonsdorff, MD, Volvo Auto India.

For Sandeep Aggarwal, founder & CEO, Droom, an online marketplace for used cars, choosing a PorscheCayenne was the result of a life-long fascination with German luxury wheels. "When I was living in California, I used to drive Mercedes Benz and BMW models," he says. "I am passionate about cars but that passion has grown because I am now handling automobiles every day thanks to Droom."

Some own more than one luxury car to underline different facets of their personality .Vipul Jain of Noida-headquartered stem cell therapy firm Advancells owns an Audi A6 and a Mercedes Benz E Class. "Audi represents youthful energy while still being a town car and Mercedes is the quintessential pinnacle of prestige," he says.

Carmakers say many of the entrepreneurs from tier-2 cities consider buying a luxury car an immediate goal rather than a retirement lolly."A luxury car now denotes the starting steps to success," explains Philipp von Sahr, president, BMW Group India.